ARCO said it will implement a cost reduction program designed toreduce before-tax costs by more than $500 million over the next twoyears. Approximately $350 million of the cost savings are expectedin 1999. The cost reductions will fall largely into fourcategories: upstream operating and support costs; explorationspending; downstream operating and support costs; and costs for thecorporate center and support services. ARCO’s increasedconcentration on core exploration and production areas and therecent divesting of non-strategic assets have facilitated theadditional cost reductions.
Articles from Said
El Paso Field Services said its Global Compression Project inthe San Juan Basin is now complete, providing producers with anadditional 40,000 horsepower of compression, new gas dehydrationfacilities and 54 miles of new pipeline looping.
Citing continuing reduction of capacity by unseasonably hightemperatures, PG&E Gas Transmission-Northwest said it wouldagain be necessary to limit volumes today to 2,450 MMcf/d atKingsgate and to 1,870 MMcf/d at Station 14 (the last one upstreamof Malin) in order to return the system to optimum performance.
Reno, NV, utility Sierra Pacific said beginning this month, itwill offer customers Simple Choice, a package of energy andinfotainment products and services for the home paid for on onebill.
Shell Offshore said oil and gas production has begun from thefirst sub-salt well in the Enchilada field, which includes GardenBanks Blocks 83, 84, 127, 128 and 172 and is located about 185miles southwest of New Orleans in the Gulf of Mexico. The sub-saltChimichanga well, is located on Garden Banks Block 127 and isjointly owned by Shell Offshore, Amerada Hess, and PennzoilExploration & Production.
Nautilus Pipeline said it is on track to begin receiving gasagain at Ship Shoal 207 at the start of the May 1 gas day.Processing of a large condensate slug at Exxon’s Garden City Plantonshore Louisiana (see Daily GPI, April 17) is expected to becompleted by Thursday.